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U.K. (FTSE) Market Analysis & Valuation

UpdatedJan 14, 2026
DataAggregated Company Financials
Companies1094
  • 7D0.2%
  • 3M7.5%
  • 1Y23.8%
  • YTD2.1%

Over the last 7 days, the market has remained flat, with no particular sector making any big moves this week. As for the longer term, the market has risen 24% in the past 12 months. Looking forward, earnings are forecast to grow by 14% annually.

Trending IndustriesOil and GasGoldBiotechSoftware

Market Valuation and Performance

Has the U.K. Market valuation changed over the past few years?

DateMarket CapRevenueEarningsPEAbsolute PEPS
Wed, 14 Jan 2026UK£2.9tUK£2.0tUK£138.0b16.5x21x1.5x
Fri, 12 Dec 2025UK£2.8tUK£2.0tUK£138.1b15.9x20.1x1.4x
Sun, 09 Nov 2025UK£2.8tUK£2.0tUK£138.1b16.1x20.1x1.4x
Tue, 07 Oct 2025UK£2.7tUK£1.9tUK£135.3b16.6x20.2x1.4x
Thu, 04 Sep 2025UK£2.7tUK£2.0tUK£135.8b16x19.6x1.4x
Sat, 02 Aug 2025UK£2.6tUK£2.0tUK£134.0b16.1x19.6x1.3x
Mon, 30 Jun 2025UK£2.5tUK£1.9tUK£126.7b16.7x19.6x1.3x
Wed, 28 May 2025UK£2.5tUK£1.9tUK£125.8b16.4x19.8x1.3x
Fri, 25 Apr 2025UK£2.4tUK£2.0tUK£134.8b15.3x17.8x1.2x
Sun, 23 Mar 2025UK£2.5tUK£2.0tUK£136.4b15.7x18.1x1.2x
Tue, 18 Feb 2025UK£2.5tUK£2.0tUK£139.1b16.4x18.2x1.3x
Thu, 16 Jan 2025UK£2.4tUK£2.1tUK£124.8b15.7x19.5x1.2x
Sat, 14 Dec 2024UK£2.5tUK£2.0tUK£122.5b16.3x20.2x1.2x
Mon, 11 Nov 2024UK£2.4tUK£2.0tUK£118.2b16.3x20.2x1.2x
Wed, 09 Oct 2024UK£2.4tUK£2.0tUK£118.7b16.3x20.2x1.2x
Fri, 06 Sep 2024UK£2.4tUK£2.0tUK£118.9b16.9x20.4x1.2x
Sun, 04 Aug 2024UK£2.4tUK£2.0tUK£124.9b16.7x19.3x1.2x
Tue, 02 Jul 2024UK£2.4tUK£2.0tUK£132.1b16.3x18.2x1.2x
Thu, 30 May 2024UK£2.4tUK£2.1tUK£129.4b17.1x18.9x1.2x
Sat, 27 Apr 2024UK£2.4tUK£2.1tUK£143.6b16x16.9x1.2x
Mon, 25 Mar 2024UK£2.4tUK£2.1tUK£147.6b16.3x16.4x1.1x
Wed, 21 Feb 2024UK£2.3tUK£2.0tUK£146.9b15.3x15.6x1.1x
Fri, 19 Jan 2024UK£2.3tUK£2.1tUK£193.5b14.7x11.7x1.1x
Sun, 17 Dec 2023UK£2.3tUK£2.1tUK£193.7b15.1x11.9x1.1x
Tue, 14 Nov 2023UK£2.2tUK£2.2tUK£195.0b14x11.5x1x
Thu, 12 Oct 2023UK£2.3tUK£2.2tUK£185.8b14x12.6x1.1x
Sat, 09 Sep 2023UK£2.3tUK£2.2tUK£185.4b14.5x12.4x1.1x
Mon, 07 Aug 2023UK£2.4tUK£2.2tUK£189.4b14.6x12.4x1.1x
Wed, 05 Jul 2023UK£2.3tUK£2.2tUK£208.0b14.2x11.2x1.1x
Fri, 02 Jun 2023UK£2.3tUK£2.2tUK£211.4b14.2x11.1x1.1x
Sun, 30 Apr 2023UK£2.5tUK£2.2tUK£179.2b14.5x13.8x1.1x
Tue, 28 Mar 2023UK£2.4tUK£2.2tUK£184.0b13.4x12.8x1.1x
Thu, 23 Feb 2023UK£2.5tUK£2.2tUK£200.4b13.7x12.7x1.2x
Sat, 21 Jan 2023UK£2.5tUK£2.1tUK£183.7b13.7x13.6x1.2x
Price to Earnings Ratio

13.6x


Total Market Cap: UK£2.5tTotal Earnings: UK£183.7bTotal Revenue: UK£2.1tTotal Market Cap vs Earnings and Revenue0%0%0%
U.K. Market Price to Earnings3Y Average 16.7x202420252026
Current Market PE
  • Investors are optimistic on the British market, and appear confident in strong long term growth rates.
  • The market is trading at a PE ratio of 21.0x which is higher than its 3-year average PE of 16.7x.
Past Earnings Growth
  • The earnings for companies in the British industry have declined 9.1% per year over the last three years.
  • Revenues have also declined 2.1% per year.
  • This means overall sales from these companies are declining and profits are subsequently falling as well.

Sector Trends

Which sectors have driven the changes within the U.K. Market?

GB Market0.19%
Industrials2.52%
Tech2.12%
Real Estate1.72%
Materials1.53%
Consumer Staples0.48%
Telecom0.40%
Energy0.31%
Consumer Discretionary0.28%
Healthcare-1.04%
Financials-1.39%
Utilities-1.48%
Sector PE
  • Investors favour the Materials sector the most for future growth, which is trading above its 3-year average PE ratio of 19.2x.
    • Analysts are expecting annual earnings growth of 29.8%, which is lower than the prior year's growth of 33.5% per year.
Forecasted Growth
  • Analysts are most optimistic on the Telecom sector, expecting annual earnings growth of 30% over the next 5 years.
  • This is better than its past earnings growth rate of 5.5% per year.
  • In contrast, the Industrials sector is expected to see its earnings grow by 7.1% per year over the next few years.

Top Stock Gainers and Losers

Which companies have driven the market over the last 7 days?

CompanyLast Price7D1YValuationSector
BA. BAE SystemsUK£20.7210.1%
+UK£5.7b		74.6%PE31.2xIndustrials
GLEN GlencoreUK£4.709.9%
+UK£4.9b		27.9%PS0.3xMaterials
RR. Rolls-Royce HoldingsUK£13.054.9%
+UK£4.6b		130.4%PE18.9xIndustrials
BATS British American TobaccoUK£42.054.2%
+UK£3.7b		44.2%PE30xConsumer Staples
ZEG Zegona CommunicationsUK£15.1513.1%
+UK£1.3b		282.6%PS4.4xTelecom
See more

Market Insights

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Which Markets Will Sink or Swim in 2026? 🌍
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Richard Bowman
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What research teams agree on – and where they don’t – heading into 2026.
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Three Sectors Expected to Rally in 2026 📈
Last Week

Three Sectors Expected to Rally in 2026 📈

Latest News

GLEN
UK£4.70
Glencore
7D
9.9%
1Y
27.9%

Glencore plc's (LON:GLEN) Shares Bounce 25% But Its Business Still Trails The Industry

Jan 14
Glencore plc's (LON:GLEN) Shares Bounce 25% But Its Business Still Trails The Industry
ABF
UK£18.38
Associated British Foods
7D
-14.4%
1Y
-6.0%
NWG
UK£6.29
NatWest Group
7D
-4.8%
1Y
62.9%
IAG
UK£4.08
International Consolidated Airlines Group
7D
-6.7%
1Y
31.7%

IAG: Heathrow Strength And Capital Returns Will Support Stronger Future Shareholder Returns

Narrative Update Overview The updated analyst price target for International Consolidated Airlines Group moves higher to a range signaled by recent Street research, with targets increasing to £5.00 and £6.20, supported by analysts citing IAG's role as a top pick in European airlines and its dominant position at London Heathrow, alongside modest shifts in fair value estimates, discount rate, revenue growth and profit margin assumptions. Analyst Commentary Recent Street research around International Consolidated Airlines Group has focused on refreshed price targets and the role of the group within the European airline peer set, with views clustering around valuation support and execution risks tied to the broader sector backdrop.
TSCO
UK£4.20
Tesco
7D
-7.7%
1Y
17.8%

TSCO: Higher Risk Assumptions And Stable Margins Will Shape Future Upside

Analysts have trimmed their Tesco fair value estimate slightly to £4.80 from about £4.84. They cite a modest reset in discount rate assumptions alongside steady expectations for revenue growth, profit margins and future P/E levels.
REL
UK£31.24
RELX
7D
1.5%
1Y
-17.0%

REL: Earnings Guidance And Margin Outlook Will Support Future Generative AI Upside

Analysts have trimmed their fair value estimate for RELX from £44.18 to £43.85 per share, reflecting slightly adjusted assumptions around discount rates, revenue growth, profit margins, and future P/E levels. What's in the News RELX reaffirmed earnings guidance for the full year 2025, indicating expectations for continued underlying revenue growth.
BATS
UK£42.05
British American Tobacco
7D
4.2%
1Y
44.2%

There's Reason For Concern Over British American Tobacco p.l.c.'s (LON:BATS) Price

Jan 11
There's Reason For Concern Over British American Tobacco p.l.c.'s (LON:BATS) Price
GSK
UK£18.58
GSK
7D
-2.2%
1Y
43.6%
BARC
UK£4.77
Barclays
7D
-2.3%
1Y
81.0%
BA.
UK£20.72
BAE Systems
7D
10.1%
1Y
74.6%

BA.: Sector Caution And U.S. Shutdown Risk Will Restrain Overheated Expectations

Narrative Update The updated analyst price targets for BAE Systems now center around £19.50 to £18.60 per share. This reflects a modestly lower fair value estimate and slightly adjusted growth, discount rate and P/E assumptions, as analysts balance sector wide caution with valuation driven support.
SHEL
UK£27.22
Shell
7D
-0.9%
1Y
1.8%

SHEL: Future Returns Will Reflect Resilient Cash Flow And Shareholder Distributions

Our updated view on Shell reflects a small trim in fair value to €31.03 from €31.31, as analysts balance slightly softer growth and margin assumptions with higher price targets associated with resilient cash generation, tighter refining conditions, and a more disciplined focus on costs and shareholder returns. Analyst Commentary Street research on Shell is mixed, with several price target increases reflecting confidence in execution and cash generation, while a few more cautious voices highlight valuation and medium term growth constraints.
III
UK£30.63
3i Group
7D
-5.6%
1Y
-14.4%

III: Slower Momentum Will Still Deliver Compounding Returns And Dividend Support

Analysts have trimmed their 3i Group price target to £31.50 from £41.00, reflecting updated assumptions for the discount rate and earnings multiples as they factor in what they describe as slower momentum for the company. Analyst Commentary Recent research on 3i Group is skewed toward caution, with bearish analysts pointing to slower momentum and a valuation reset as key reasons for trimming expectations.
RKT
UK£61.90
Reckitt Benckiser Group
7D
2.1%
1Y
27.3%
RR.
UK£13.05
Rolls-Royce Holdings
7D
4.9%
1Y
130.4%
KAP
US$64.90
National Atomic Company Kazatomprom JSC
7D
6.6%
1Y
74.0%

KAP: Higher Revenue Guidance And Japanese Supply Deal Will Support Steady Outlook

Analysts have nudged their fair value estimate for National Atomic Company Kazatomprom JSC higher to $64.39 from $62.37, citing updated assumptions around discount rates, revenue growth, profit margins and future P/E levels. What's in the News Kazatomprom and Kansai Electric agreed on uranium supply for Japanese nuclear power plants, supporting a long term supply chain for Japan's gradually restarting nuclear fleet and reinforcing Kazatomprom's role as a key partner for Japanese utilities (Client Announcements).
ZEG
UK£15.15
Zegona Communications
7D
13.1%
1Y
282.6%